2011-12 performance - rallis india€¦ · copyright © rallis india limited. all rights reserved...

Copyright © Rallis India Limited. All rights reserved

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2011-12

Performance

V Shankar

24th April 2012


Highlights : Performance 2011-12

Gross Sales up by 15 % ; crosses 1300 Cr. Milestone.

EBIDTA (bei) up 11%

Rallis acquires Organic Manure Business

Rallis Board recommends Final Dividend of Rs 1.20 per share (total

dividend of Rs 2.20 per share or 220% )

Launch of Samruddh Krishi , TRAITS

Extension of MoPu to Maharashtra

Dahej Plant ramps up to full capacity utilisation

2


Performance Highlights

(Consolidated)

3

Cr

*after exceptional item-Rs.17 crs

Q-4

10-11

Q-4

11-12

Gross Sales 253 217

EBITDA(bei) 30 12

PBT (bei) 29 8

PAT 19 9

YTD

10-11

YTD

11-12

1,147 1,324

192 213

184 167

126 101*

For the year

Gross Sales up by : 15 %

EBIDTA up by : 11 %


YTD

10-11

YTD

11-12

Gross Sales

(Incl.Excise) 1,147 1,324

Net Sales

(Line no 1 a) 1,066 1,246

Profit from operations

( Line no 3) 175 184

Add Depreciation

(Line no 2 e) 17 29

EBITDA (bei) 192 213

EBITDA % 18.0% 17.1%

EBITDA 2011-12

4

Cr

(Consolidated)


Performance Highlights

(Standalone)

5

Cr

*after exceptional item-Rs.17 crs

Q-4

10-11

Q-4

11-12

Gross Sales 234 200

EBITDA(bei) 29 13

PBT (bei) 29 10

PAT 19 12

YTD

10-11

YTD

11-12

1128 1231

190 207

184 167

126 101*

For the year

Gross sales up by : 9 %

EBIDTA up by : 9 %

Copyright © Rallis India Limited. All rights reserved 6

Working Capital & Cash

More focus on the collection has led to the decrease in receivable

Cash generated from operations 100 Crs.

Days inventory outstanding has remained same despite tough market

conditions.


Domestic Business


Domestic Business : Q4

8

Erratic rainfall Low Productivity Poor crop economics Reduced acreages

Q4 conditions were

adverse Andhra Pradesh , Karnataka and

Maharashtra and WB were severely

impacted due to erratic rainfall

Reduced number of sprays Preference for low value

molecules

Reduction in sales Pressure on profit margins High market inventory

Crop Protection Industry

Farmer Behaviour

Crop holiday in Rice deltas of AP,

Paddy , Pulses and Oilseeds acreages

were down as compared to last year

Increased input prices


Domestic Business : 2011 - 12

9

Normal but Erratic Rainfall Low Productivity in Paddy

and Pulses in few areas Increased RM prices Low pest pressure

Farming Conditions Kharif : turned Normal Rabi : Below Average

Reduced number of sprays Cautious use of Agri. Inputs

Pressure on profit margins High market inventory Increase in debtors

Crop Protection Industry

Farmer Behaviour

Rainfall normal till Kharif , sudden break in Rabi

Saturday, April 21, 2012

As per state economic survey, agriculture and allied

activities has shown a negative growth of 5.1 per cent

against a growth of 15.6 per cent in 2010-11 in

Maharashtra.

Overall year 2011-12 was tough for Crop Protection industry


Crops Status : 2011 - 12

Crop Acreage Pest

Incidence Yield

Usage of

Crop

Protection

Molecules

Produce

Price

Expectation

Farmer

sentiments

Rice

Pulses

Sugarcane Cotton

Soyabean

Potato

*Source: Ministry of Agriculture and DAC

High expectations/good sentiments

Low expectations/low sentiments

10


Rallis – Pillars of strength


Brand Strength

Product

Innovation

Sustainability

Quality of

operations

Customer

Connect

Business

Excellence

Growth mindset

and Entering new

arenas

Buoyant Agriculture

Scenario

Rallis – Pillars of strength


Insecticides

Herbicides

Fungicides

10 New Products Launched

PGR

NEON : Tea and Cotton

SONIC : Sugarcane and Paddy

TAFFIN : Vegetables

HONCHO : Vegetables

CYLO : Paddy

FYCOL : Oil seeds

VAAR : Oil seeds

SARAS : Fruits and Vegetables

DITAF : Fruits and Vegetables

TATA BAHAAR : All crops


Seed Treatment Chemicals : Trooper

14

More focus on the Seed

Treatment Chemicals

TROOPER Launched

Training programme at

Ahmedabad


Ralli Kisan Kutumb : Integration of various initiatives

Rallis has been always focusing on farmer prosperity through relationship building


Customer Connect – New initiatives

16

Sustained platform for communication with

key customers

Will improve customer connect and Farmer

Engagement

RKK news letter : Harita Pragathi

Key highlights :

Circulated four times a year

(2 times in Kharif and 2 times in Rabi)

7 languages to cover all the regions

Provide latest information on agricultural

trends/practices/ Rallis initiatives/New

products


Quarterly magazine dedicated to achievements, success stories and

aspirations

Circulated to S&M team and channel partners

RALLI BEAT : News letter for Sales & Marketing Team


Rallis winning the CII-EXIM

award for significant achievement in

Year - 2008

Rallis winning the RBNQA Award for

Excellence- 2007

TBEM Serious Adoption Award to Rallis-2005

TBEM Active Promotion Award to Rallis -2007

Rallis BE Journey

JRDQV Award Rallis - 2011


Tata Innovista Regional Level Awards

19

Tata Innovista Regional level (North Forum) award for The Innovative

Product - Applaud under Process innovation in Support areas Tata Innovista Regional level award for Neon 5EC on control of

Cotton Jassid under New Product Innovation

Tata Innovista Regional level

(Mumbai Region) award for

Product P - A Customer's

Delight under Dare to Try

6 Innovation

projects has been

selected for

Regional round for

2012

4 won the regional

award


EHS Recognition

20

National Safety Award for Akola Unit Prashansa Patra Award from NSC

Merit of excellence certificate-2010, from National safety Council, Maharashtra Chapter

Turbhe Lote Akola


2010-11* 2011-12 2010-11

Full year

Net Sales 14.8 81.4 42.4

Net Profit 1.7 0.6 (14.3)

Crs Metahelix Consolidated financials

*Year 2010-11 contain figures for Metahelix after Rallis Acquisition i.e

from fourth quarter onwards

Key wins

Metahelix leveraged synergy benefits using multiple brands & multiple channels and establish our seed brands in various segments.

Launched & established 9 products in seeds & extensive field activities to lay strong foundation for new brands across geographies .


Rallis – Way Forward

22


Way Forward

23 Copyright © Rallis India Limited. All rights reserved

Decreasing per capita arable land

will lead to search for new areas

Rising population exerts pressure on

food production

Concern over depleting soil health

Declining Agri. Labour force

Increasing Urbanization

Trend 1: High Focus on Productivity

To meet the rising demand for food and dietary

protein global food production will need to double by 2030

Trend 2: : Sustainability & Green Movement

Agricultural management will involve increasing

productivity by optimization of natural resources –

soil and water.

Trend 3: Farm mechanization will drive Agri.

growth in future

With rising pressure on productivity coupled with labour constraints mechanisation will be crucial


Rallis – Pillars of growth

24


Rallis Acquires Organic Manure Business

Improving Soil Health

on 23rd April 2012

24th Apr, 2012


About 1 millimetre of top soil is lost every year due to erosion

Increased cropping intensity depleting soil fertility

Natural agents building Organic Manure in soil such as earthworm

etc are reducing

Imbalanced use of fertilisers and Nutrients coupled with low

addition of organic matter.

Most Indian soils are not only deficient in organic carbon but also hungry in organic carbon

Soil health degradation

Our soils are increasingly getting sick


• Carbon is part of productive farming systems

• Plants take carbon dioxide (CO2) from the

air for growth and add it to the soil through

plant debris

• Microorganisms break down plant debris

and convert a portion of it into soil carbon

Role of Carbon in Agriculture

Carbon is critical for soil health


GeoGreen™ improves the soil health to have the sustainable

productivity enhancement

The process of manufacturing of GeoGreen™ will consume the

hazardous pollutants of sugarcane based agro industries, thereby

helping to protect our environment.

GeoGreen™ is an organic soil conditioner that will

vastly improve soil structure

GeoGreen™ is a sugar mills by-products and baggase

Based manure prepared through Proprietary

technology.

GeoGreen™ is rich source of ‘organic carbon’

capable of supporting & enhancing biological

activities in soil.

What is GeoGreen™

Increases water holding capacity

Increases uptake of soil nutrients

Helps fight diseases

Reduces stress factors


Large Requirement

Current Solutions

inadequate Depleting soil health`

Sugar mill problem

(Waste)

Green Solution

Need for organic

manure solution


All cash deal to acquire a majority stake (51%)

in Zero Waste Agri Organics Pvt. Ltd. at a consideration of Rs. 29 Cr.

Funding from internal accruals.

Rallis will be having exclusive marketing arrangements and shall leverage its strong

farmer connect and distribution channel to

scale up the business.

Cumulative revenues over 5 year period

Rs 100 Cr.

The acquisition


Summing Up

Farmer contact programmes vibrant as ever

Rallis Kisan Kutumba, Samrudh Krishi, More Pulses, etc

Brand power

Market share, Brand premium, Growth in key brands, New launches

EHS & Sustainability

Greening

Balanced portfolio

Crop protection, Seeds, PGN, Organic Manure, Services, Contract Mfg

Operational Excellence

Working capital, Cash, JRDQV Award winner, Innovista Awards,

EBIDTA margin , EAGLE, APOLLO

31

2011-12 performance - rallis india€¦ · copyright © rallis india limited. all rights reserved...

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